Constellation Brands, Inc. Class A (STZ)

Constellation Brands' stock price has declined 26.5% in the past six months due to decelerating beer depletion trends, macroeconomic challenges impacting Hispanic consumers, a revised medium-term beer net sales growth outlook, and weakness in wine and spirits. In late 2024, Berkshire Hathaway disclosed a $1.24 billion investment, which temporarily lifted the stock price.

The wine and spirits business sees increased volumes in the back half of the fiscal year due to vintage releases and the holiday season. The beer business experiences slower shipments in the second half of the fiscal year, aligning with regular seasonality of beer demand in the U.S., with highest sales in the spring and summer.

Constellation Brands, Inc. (STZ) is an international producer and marketer of beer, wine, and spirits, operating within the Consumer Defensive sector and Beverages - Brewers industry. The company focuses on premium and luxury brands, with a diverse portfolio that includes well-known names.

Constellation Brands has operations in the U.S., Mexico, New Zealand, and Italy, and its products are sold in over 60 countries across North America, South America, Europe, and Australia. The company has breweries in Mexico specifically for producing Corona and Modelo beer for the U.S. market.

Constellation Brands focuses on building strong brand equity and incorporates an ESG strategy. However, a securities fraud lawsuit filed between April 2024 and January 2025 alleges that the company misled investors about its financial health, particularly concerning its Wine and Spirits division, leading to a stock plunge after a disastrous earnings report in January 2025.

Institutional investors hold approximately 81.46% of Constellation Brands' shares, with major holders including Vanguard Group Inc., Capital World Investors, Berkshire Hathaway Inc., and BlackRock, Inc. Wildstar Partners LLC is the largest individual shareholder, owning 16.66% of the company's shares.